ECB interest rates to stay low for this year

Thursday, July 02, 2009 - 05:57 PM

Interest rates are expected to remain low across the Eurozone for at least the rest of this year.

The European Central Bank today decided to leave its key rate unchanged at 1%.

ECB President Jean Claude Trichet said economic activity is likely to remain weak in Europe for the rest of 2009, although the rate of decline should slow.

Labour markets are also expected to further deteriorate in the coming months, but the ECB does anticipate economic recovery by the middle of next year.

Mr Trichet says interest rates should remain low for the time being.